If a pvt. company provides security to a bank, on the basis of which the bank gives loan to a director who is also a majority shareholder, would the loan amount be considered as deemed dividend ?From: jayeshdevadiga@mail.com Yes and No.No, the amount of loan shall not be considered as deemed dividend . The reason...
No TDS on distribution of assets on liquidation
November 21, 2006 by
Someone Asked On This blog A Pvt Ltd Company is under Liquidation and there is excess of assets over liabilities( due to accumulated Profits) which the liquidator wants to distribute among the shareholder. What are the implications with reference to Section 194 read with sec 2(22)(c) and also under sec 115-O Will both the sections...
Deemed Dividend: Shareholding of the Borrowers & Credentials Matters
November 13, 2006 by
The loan can not be income in any case . However , law is blind and for certain reasons, Income Tax Act has provisions under which a loan or deposit by a private company can be taxed in hand of recipient as deemed dividend. A question on the same topic was asked on a Yahoo Group which was answered...
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